Expand and Target Non-Existing Needs.

- Compare the company's business performance with competitors by outlining the “current” strategy.

- Find out where your company's strategy needs to be adjusted

- Go to the scene to survey the 6 roads leading to the Blue Ocean.

- Look at the unique advantages of alternative products and services.

- Identify factors that need to be eliminated, created, or changed.

- Outline a “future” strategic map based on what is learned from the survey.

- Get feedback on different strategies from the company's customers, competitors' customers, and even non-users.

- Use feedback to build strategies for the future.

- Present the before and after strategy descriptions on the same page for easy comparison.

- Support only projects and action decisions that move the company closer to implementing the new strategy.

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3. Expand and target needs that do not currently exist.

One thing is for sure, no company wants to move out of the Red Ocean and then put itself in a state of chaos, because once implementing the Blue Ocean model, companies need to find ways to maximize the size of the Blue Ocean.

Expanding and targeting needs that do not currently exist is the fundamental principle for creating value innovation in Blue Oceans. This principle reduces the scale risk associated with creating new markets, by gathering the largest needs for a new product or service.

To do this, companies need to rethink two common strategies: focusing on existing customers and targeting smaller market segments to meet different customer needs. Traditionally, to increase market share, companies seek to retain and expand their existing customer base. This often leads to smaller market segments and more customization of products and services to satisfy customer needs. And as competition intensifies, these customizations become larger.

To maximize the size of their Blue Oceans, however, companies need to reverse course. Instead of focusing on customers, they need to focus on those who have not yet bought. And instead of focusing on differences among customers, they need to find a commonality in customers’ value judgments. This allows companies to reach beyond current needs to new customers.

To do this, companies first need to research and classify potential customer groups, future customers who are not currently customers of their company. Objects outside the current customer group can be divided into three levels:

Figure 9 - Three levels of segmentation of the external customer base.

These three levels of segmentation are intended to identify groups of people who have not yet purchased, but may become customers in the future. This segmentation is based on the criteria of their distance from the company's current market.

The first group of customers is closest to the company's industry market. They are the ones who currently buy very little of the company's products and services but are the ones that need to be paid attention to. These buyers are just waiting for new and better products and services rather than abandoning the current market. Therefore, if the company does not have reasonable strategic measures, it will lose this group of buyers. However, if there is a breakthrough in the industry

By breaking through in value, they will not only remain loyal but also become more frequent customers.

The second group is the people who refuse to use the products and services in the company's industry. They have a need for the company's products and services and see it as an option but do not use that option. Instead, they use an alternative product or service.

The third tier is furthest away. They are people who have never intended to buy a product or service in the company’s industry. By focusing on the most basic commonalities between current customers and non-customers, companies can understand how to attract them to new markets.

In fact, there is no exact and specific rule that regulates which customer segment should be focused on. Because the market in which a class or customer segments can often change in size over time and by product and service sector. Instead of focusing on a specific customer segment, companies should aim at other segments, find out if there is any similarity in demand between these customer segments or not to expand the scope of potential demand. The rule here is: attract the largest number of customers possible.

To maximize the size of their Blue Oceans, companies must first reach beyond existing demand to non-customers and then, when formulating future strategies, avoid microsegmenting the market opportunity.

4. Follow the correct strategic sequence

This is a very important principle in creating and maintaining Blue Oceans. A strategic model will not only bring breakthrough value to customers but also build a solid business model to be able to grow with high profits and maintain growth.

A logical sequence in strategy formulation that ensures both the firm and its customers benefit as the new business emerges will minimize business model risk. Such a strategy would follow the sequence: utility, price, cost, and barriers to adoption.

Figure 10 - Blue Ocean Strategy Sequence

5. Overcome organizational obstacles

With the above 4 principles, businesses can create a Blue Ocean strategy with a profitable business model. However, no strategy can be easily implemented without difficulties. Whether it is Red Ocean or Blue Ocean, organizations and companies need time to put these strategies into specific activities. But unlike the Red Ocean strategy, the Blue Ocean strategy creates a real transformation in the company with a completely new value curve and at lower costs.

Companies face many difficulties in implementing their strategies, and the main difficulties are the following four: First is the problem of awareness , that is, making employees understand the necessity of change. The Red Ocean Strategy is not the path to long-term profitable growth in the future, but it seems to give managers a sense of stability rather than change. Second is the problem of limited resources . The more profound the change, the more resources are needed. However, resources in companies are often not increased but cut. Third is the problem of motivating key employees to make more efforts to change the status quo of the business. To do this, companies will take years, while managers cannot wait that long. The final obstacle is the problem of organization and the relationship between interest groups in the company. This is a very sensitive and difficult issue to resolve because it involves the interests of groups within the company. If groups infringe on each other's interests, it will be difficult for managers to implement their strategies.

All businesses face these challenges to varying degrees depending on their circumstances. However, knowing how to overcome these challenges will help businesses identify and mitigate business risks. This is an important principle in implementing the Blue Ocean strategy: knowing how to overcome challenges to make the Blue Ocean model a reality.

6. Execute strategy through building internal consensus

This is the final principle of Blue Ocean strategy planning and implementation. Strategy execution is based on internal consensus, thereby motivating everyone in the organization to persistently act and implement the Blue Ocean strategy. Because the Blue Ocean strategy model must necessarily originate from what is already available in the company, a reasonable process can facilitate the formation and implementation of this strategy. This process will help businesses avoid management risks - risks often associated with people's attitudes and behaviors.

CHAPTER II

PRACTICAL APPLICATION OF THE "BLUE OCEAN" STRATEGY MODEL IN VIETNAMESE ENTERPRISES TODAY

I - SUCCESSFUL BUSINESS MODELS APPLIED IN THE WORLD

1/ United States

1.1 - Characteristics of the US market

According to the latest statistics from the General Statistics Office, the United States is the third largest country in the world with a total area of 9,364,000 km 2 , accounting for 6.2% of the world's area. The population of the United States has now reached more than 300 million people, of which 20.2% are between the ages of 0-14, 67.2% are between the ages of 15-65, and 12.6% are 65 years old and over. The population growth rate is 2.8 million people/year, which is less than 1%. [22]

The United States economy is the largest economy in the world with strong industry, modern agriculture and is the world's commercial and financial center.

Figure 11 - US Quarterly GDP Growth

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